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Congress of the United States
Washington, DCE 20515

September 21, 2015

The Honorable Thomas E. Perez
Secretary

United States Department of Labor
200 Constitution Ave. NW
Washington, DC 20210

Dear Secretary Perez,

In 2010, when your predecessor Secretary Solis first proposed changing the definition of the
term “Fiduciary”; Conflict of Interest Rule—Retirement Investment Advice, under the Employee
Retirement Income Security Act (ERISA) of 1974, it was met with significant disagreement from
life insurance providers, financial advisors and a majority in Congress. The primary concern
with this proposed rule is that it will result in significant restructuring to the life insurance
industry as well as greatly limiting the savings opportunities for low and moderate-income
earners.

In response to these objections, and facing new challenges to the President’s re-election, the
proposed rule was suspended. Unfortunately, in February of this year President Obama
announced that the Department of Labor (DOL) should reissue the proposed rule.

The proposal in its current form would have a number of unintended consequences, including a
loss of access to financial advisors for small savers and small businesses. The proposal could
disrupt existing business models and create a marketplace in which only those who can afford
more expensive in-person advice receive necessary assistance while others are forced to online
roboadvisors. This model would create an advice gap, restricting the access to investment
information that low and moderate-income earners need in order to make informed savings
decisions.

Our constituents must be able to maintain relationships with their financial advisors to avoid a
disruption in securing crucial retirement planning education and affordable investment

advice. However, DOL’s proposal would place an undue burden on modest savers, who may
become “priced out” of the market, and lose the ability to access the advisors and products, like
guaranteed lifetime income that they rely on today. This proposal would have the adverse effect
of increasing the cost of financial advice, and could prevent small account holders from
accessing prudent investment guidance at a time when we should be promoting access to
retirement savings options for Main Street America.

In light of these serious concerns with the potential consequences of implementing this rule we

strongly encourage you to abandon this effort. In addition, we have been asked by many of our
constituents to encourage you to adopt these following changes before issuing the final rule:

PRINTED ON RECYCLED PAPER


1. Explicitly and affirmatively clarify that the sale of proprietary products and receipt of
differential compensation (e.g., commissions and health benefits) are consistent with the
Impartial Conduct Standards required under the “Best Interest Concept Exemption” and the
revised “Prohibited Transaction Exemption” 84-24.

2. Remove “without regard to” language and insert language that ensures consistency with the
existing ERISA duty of loyalty under Section 404.

3. Provide clear guidance and examples regarding compliant sales practices regarding the sale
of proprietary products and receipt of differential compensation.

Again, we do not believe that your issuance on this proposed rule is in the best economic interest
of our constituents, but the inclusion of these three changes will provide some necessary
improvements.

Thank you for your consideration of this matter.

Sincerely,

Gym Cols Sand Wi
LynJenkins, €PA David Young _Doug tAméifa VA
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